Prudent Corporate Advisory Services Limited (PCASL), a popular integrated wealth management service provider opens its initial public offer (IPO) on Tuesday, May 10. Incorporated in 2003, the company offers mutual fund products, life and general insurance solutions, stock broking services, SIP with insurance, gold accumulation plan, asset allocation and trading platforms. Spread across the country, it is one of the fastest-growing financial services groups. Should you subscribe to Prudent Corporate Advisory Services IPO? Let’s take a look at the basics first
Prudent Corporate Advisory Services IPO Price, Issue Size, Other Details
Prudent Corporate Advisory Services IPO is an entirely offer- for-sale issue. The promoters and shareholders are offloading for 85.5 lakh shares with a price band of Rs 595-630 apiece. Wagner will sell up to 82.8 lakh shares or 50 per cent of its stake and Shirish Patel will offload around 2.68 lakh shares. One can bid for a minimum of 23 shares and in multiple of 23 thereafter. The maximum limit for retail investors has been fixed at 13 lots. The company aims to garner Rs 538.61 crore from IPO, at the upper end of the price band. The company will not get any proceeds from the issue.
Prudent Corporate Advisory Services Limited IPO Quota
The Prudent Corporate IPO has set aside 50 per cent stake for qualified institutional buyers (QIB). On the other hand, around 35 per cent of the net offer have been allocated for retail investors. The non institutional investors (NII) can bid for the remaining 15 per cent of the offer.
Prudent Corporate Advisory Services Limited IPO Anchor Investors
Prudent Corporate Advisory Services garnered Rs 159.43 crore from 24 anchor investors ahead of the launch of its initial public offering. Marquee investors included HSBC, Kuber India Fund, Societe Generale, DSP Mutual Fund, Axis Mutual Fund, Nippon Life, L&T Mutual Fund, Motilal Oswal Mutual Fund, UTI MF, Aditya Birla Sun Life Trustee, and Kotak Mutual Fund.
Prudent Corporate Advisory Services IPO Valuation
“At the higher end of the price band Prudent will be trading at P/E multiple of 34.0x its annualized EPS for 9MFY2022 as compared to Anand Rathi
which is trading at 20.5xFY2022 earnings,” said Angel One.
Prudent Corporate Advisory Services IPO Financials
Prudent Advisory has grown it’s AUM at a CAGR of 32.8 per cent between Mar 2018 and Dec 2021. Moreover the company has grown its revenues and profits at a CAGR of 13.6 per cent and 46.8 per cent between FY2019 and FY2021 despite the adverse impact of Covid-19. For 9MFY2022 Prudent has reported revenues of Rs 321.2 crore while net profits at Rs 57.6 crore has already surpassed FY2021PAT of Rs 45.3 crore, Angel One said.
Prudent Corporate Advisory Services IPO GMP
Prudent Corporate is trading at a premium of Rs 30 in the grey market on Tuesday. The grey market premium often indicates how a share will perform when it will be listed.
Prudent Corporate Advisory Services IPO: Should you Invest?
“The company operates in an underpenetrated Indian asset management industry, which has clocked a CAGR of more than 20 per cent. Prudent has an experience of over 2 decades that helped to integrate knowledge and expertise in financial product distribution with technology and provide a comprehensive business platform. It offers digital wealth management solutions through platforms, namely FundzBazar, PrudentConnect, Policyworld, WiseBasket and CreditBasket. Each platform is designed to provide mutual fund distributors (MFDs) and the retail investors a comprehensive set of financial service solutions, based on their investment needs. Although the company has a strong financial track record, innovative technology, massive PAN India distribution network, the IPO is aggressively priced and hardly leaves anything meaningful on the table for investors with a mediumterm perspective,” said Reliance Securities.
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